Pure Digital Executes First Test Trade
Posted by Colin Lambert. Last updated: September 14, 2021
Digital assets platform Pure Digital, part of Puremarkets, has successfully executed a live test trade on its wholesale digital assets platform, which is a fully automated, high throughput OTC marketplace for digital currencies with physical delivery routed to bank-grade custodians.
Aimed at Institutional participants who will trade on the platform utilising bilateral credit, Pure Digital enables counterparty control for all trading participants, and creates “a significant increase in capital efficiency”, thus establishing a robust market for price discovery and exchange of risk, the firm says.
The live test trade leveraged Zodia’s solution for custody and post trade settlement, which received regulatory approval from the UK’s Financial Conduct Authority in July. Pure Digital and Zodia Custody signed a Memorandum of Understanding last year with the intention of working together, with Zodia to provide bank-grade crypto custody services. At launch, Pure Digital will be multi-custodial, with trading participants free to leverage their preferred digital currency custody solutions and manage risk through a smart custody routing mechanism.
Wholesale participants will be able to trade, subject to regulatory approval, on Pure Digital through their existing prime bank and custodial relationships using pre- and post-trade infrastructure provided by firm like Zodia Custody. The platform will deploy State Street’s Currenex trading technology to deliver industry standard infrastructure and to minimise technology cost for bank participants.
“Executing a live test trade via wholesale trading and custodial infrastructure is an important step forward and we welcome Zodia as a key partner of Pure Digital,” says Campbell Adams, founder of Pure Digital Markets.
Lauren Kiley, CEO of Pure, adds, “We are very excited to have a live test trade on the platform as we are bringing to the market exactly what it has been missing- an interbank wholesale marketplace which is transparent, efficient, and bank-grade.”
Meanwhile, Maxime De-Guillebon, CEO, Zodia, says, “Collaboration between custodian and marketplaces is key in developing a sophisticated cryptoasset market that meets institutional requirements and standards. Through Zodia’s partnerships with trading venues like Pure Digital we are able to build an ecosystem that satisfies institutional investors’ need for segregation of duties and asset safety within bank-grade custodial infrastructure.”